The Grant Consolidation Act of 1969 would provide the President with one major tool for overcoming the diverse problems resulting from the presently fragmented assistance system. Patterned after the long-accepted reorganization tatute, the bill would permit rapid action, initiated by the President, to merge existing assistance programs in closely related functional areas. It would also reserve to Congress the power to disapprove such mergers and contains appropriate limits on the President's authority. Briefly, the bill authorizes the President to examine Federal assistance programs, which are broadly defined to include grants, loans, guarantees, property, payments in lieu of taxes and other forms of aid. When he finds any consolidation of such programs is necessary or desirable to achieve one of the purposes of the bill, including promoting better execution of the laws, increasing efficiency and eliminating overlap, he may prepare a Federal assistance program consolidation plan. Consolidation plans may alter the statutory terms and conditions of the programs being consolidated to the extent necessary to achieve their merger and may include measures authorized under the existing reorganization__statute. However, in selecting the terms and conditions that would apply, the President would be limited by the range of the terms and conditions contained in the programs being merged. In addition, such plans could not (1) extend any programs beyond the period authorized by law, (2) consolidate programs which are not in closely related functional areas, (3) provide assistance to anyone who was not eligible for assistance under one of the programs being consolidated, or (4) vest responsibility for the consolidated programs in someone not responsible for one of the programs being merged. The plans would be transmitted to the Congress where they would be subject to the same consideration as plans submitted under the reorganization statute. Thus, either House could disapprove a consolidation plan within sixty calendar days of continuous session. The authority to transmit consolidation plans would terminate on April 1, 1971. We believe the use of the time-tested reorganization statute approach in the consolidation of assistance programs provides a sound means of dealing with some of the most vexing problems we face in making the Federal system work more effectively. Combined with other efforts that are underway to streamline our assistance programs and delivery procedures, appropriate consolidations of aid programs will help to insure that assistance to States and communities can be administered without the costly and time consuming red tape which now handicaps these efforts. We recommend prompt consideration of the Grant Consolidation Act of 1969. Enactment of S. 2035 would be in accord with the program of the President. Sincerely yours, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. U.S. CIVIL SERVICE COMMISSION, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in further reply to your request for the Commission's views on S. 2035, a bill "To amend title 5, United States Code, to authorize consolidation of Federal assistance programs, and for other purposes." In his recent message to the Congress on Improving Administration of Federal Programs, the President identified the problem which this proposal is designed to meet. He stated: "As grant-in-aid programs have proliferated, the problems of delivery have grown more acute. States, cities, and other recipients find themselves increasingly faced with a welter of overlapping programs, often involving multiple agencies and diverse criteria. This results in confusion at the local level, in the waste of time, energy and resources, and often in the frustration of the intent of Congress." We strongly support the purposes and principles of S. 2035, the "Grant Consolidation Act of 1969." It would create the urgently needed machinery necessary to launch a frontal attack on the serious fiscal and administrative problems present in the grant-in-aid system which plague not only State and local govern ments but Federal agencies as well. Among efforts to improve the administration of Federal assistance programs, consolidation of closely related programs where practicable and desirable deserves star billing. Other reforms which must be viewed as part of the scenario include common regional boundaries, improved delegations of authority, cutting of processing time, and joint funding simplification. The Commission's concern in grant consolidation stems, in part, from its general interest in promoting better execution of the laws, more effective management of the executive branch and of its agencies and functions, and the expeditious administration of the public business-objectives of the recently extended reorganization statute after which the Grant Consolidation Act is patterned. A second and more directly related factor is the Commission's involvement in intergovernmental affairs under the Intergovernmental Cooperation Act of 1968 and the expansion of that activity which will result from the enactment of a bill now under consideration by your committee-the Intergovernmental Personnel Act of 1969 (S. 11). The Intergovernmental Personnel Act would require the Commission to coordinate the personnel administration, technical assistance and training support given to State and local governments under authority of this act with any such support given under other Federal programs. This includes making the necessary arrangements to avoid duplication and insure consistent administration of related Federal activities. The sheer number of programs under which personnel administration and training support is provided to State and local governments makes this a tremendous administrative undertaking. In the hearings on the Intergovernmental Personnel Act of 1966 (S. 3408), Exhibit 10 (pages 52-54) indicates that in FY 1967 fourteen Federal departments and major agencies would administer 95 different programs which would train more than 1,500,000 personnel for State and local government employment. Both the number of programs and the number of trainees have grown since that time. The extent to which these programs relate to one another and need to work in concert represents an increasing problem of coordination. Authorizing the President to consolidate closely related programs where practical and desirable would go far in alleviating this problem. It would also help to overcome the difficulties facing those seeking to "package" grant applications and such problems as a lack of information concerning sources of available funds and an overlapping and duplication among grant programs. While this proposal should not be viewed as a panacea, it does contain many of the necessary ingredents to cure much of the inflexibility resulting from the many separate programs each with its own administrative requirements-which have sapped the capacity of both administrators and elected officials to execute, coordinate, and effectively evaluate grant-in-aid programs. The Commission, therefore, strongly urges enactment of S. 2035, the proposed Grant Consolidation Act of 1969. Several changes would be desirable to make this bill conform to the style of title 5, United States Code which it amends. The Commission's staff would be happy to work with your committee staff in this regard. The Bureau of the Budget advises that there is no objection to the submission of this report and that enactment of S. 2035 would be in accord with the program of the President. DEAR MR. CHAIRMAN: This is in reply to your request for the views of this Department concerning S. 2035, a bill "To amend title 5, United States Code, to authorize consolidation of Federal assistance programs, and for other purposes". This bill would authorize the President to propose to Congress proposals for the consolidation of grant programs carried on by agencies of the Federal Government. Any such proposal would go into effect after sixty calendar days of continuous session of the Congress following its transmittal to the Congress unless during that period either House passed a resolution stating that it would not favor the consolidation proposal. The Department of Commerce believes that the consolidation of Federal grant programs could in many cases result in improved effectiveness in the use of the Federal tax dollar. We, therefore, strongly recommend the early enactment of S. 2035. We have been advised by the Bureau of the Budget that there would be no objection to the submission of our report to the Congress and that enactment of this legislation would be in accord with the program of the President. Sincerely, JAMES T. LYNN, General Counsel. COMPTROLLER GENERAL OF THE UNITED STATES, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: Your letter of May 6, 1969, requested our comments on S. 2035, a bill to amend title 5, United States Code, to authorize consolidation of Federal assistance programs. We fully support the general objective of simplifying and improving the administration of related grant-in-aid programs. We believe S. 2035 would provide a significant means for achieving constructive action in the future to consolidate those Federal assistance programs which are appropriate for such consolidation and therefore recommend favorable consideration of the bill. Section 1005(a) provides for an effective date for consolidation that may occur on any day during the month. We believe it would be preferable to make such consolidations effective on the first day of any given month. This could be accomplished by inserting on line 15, page 6, after the word "effective," the words "on the first day of the month following," and delete the word "at." Sincerely yours, GENERAL SERVICES ADMINISTRATION, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: Your letter of May 6, 1969, requested the views of the General Services Administration concerning S. 2035, 91st Congress, a bill "To amend title 5, United States Code, to authorize consolidation of Federal assistance programs, and for other purposes." The bill would enable the President to effect the consolidation of closely related Federal assistance programs, unless disapproved by either House of Congress within a period of 60 days. A consolidated program could be placed under the jurisdiction of a single agency if that agency were formerly responsible for the administration of one or more of the programs contained in the consolidation. GSA administers a number of price discount and donation programs involving the conveyance of surplus property for public purposes, such as airports, parks, recreation, historic monuments, health, education, fish and wildlife. We also administer a program under which machine tools are loaned to schools. Under a statutory authority which expired on December 31, 1968, GSA has been making payments in lieu of taxes on three items of property transferred from the Reconstruction Finance Corporation. Proposed legislation to extend the authority has been introduced in both Houses of Congress. Any or all of these programs would, under S. 2035, be subject to consolidation with other programs providing Federal monetary aid or other assistance for similar purposes. Consolidation of overlapping Federal assistance programs could benefit the intended beneficiaries, the Government, and the taxpayer. GSA therefore supports S. 2035. However, section 1002(3) of the bill includes in the definition of Federal Assistance such items as "repayable advances, contracts, or technical assistance" offered not only to State and local governmental bodies and public, quasi-public, or private institutions and associations, but also to private corporations and individuals. Such a broad definition would include commercial contractual actions accomplished in normal agency procurement and service programs having no real relationship to Federal assistance given to local public benefit programs such as appear to be within the contemplation of the bill. With that qualification, the General Services Administration favors the enactment of the bill. The Bureau of the Budget has advised that there is no objection to the submission of this report to your Committee and that enactment of this bill would be in accord with the program of the President. Sincerely, HAROLD L. TRIMMER, Jr. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, August 4, 1969. DEAR MR. CHAIRMAN: This letter is in response to your request of May 6, 1969 for a report on S. 2035, the "Grant Consolidation Act of 1969". This bill would add a new Chapter 10 to Title 5 of the United States Code, patterned after the procedures of the reorganization authority of Chapter 9 of the Title, and incorporating by reference some of the provisions of Chapter 9. The bill would provide the President with an effective method for making an orderly reduction in the unwieldy number of separate grant programs currently in existence, for eliminating overlapping and duplication among the programs, and for improving the consistency, efficiency, and administration of grant programs. A proposal for grant consolidation wasincluded as Title VI in the Intergovernmental Cooperation Act of 1968 when it was under consideration by the Senate as S. 698 of the 90th Congress; the Title was deleted in the legislation as enacted. This Department, while favoring the objectives of the proposed Title, felt that the provisions were limited and unclear, and therefore did not support that part of the bill. However, the present bill has eliminated the conditions which we previously questioned. We are therefore glad to give our full support and endorsement to S. 2035. The bill sets up reasonable but limited perimeters for the exercise of presidential authority in consolidating grant programs. The proposal must deal with programs in closely related functional areas, may not continue any program beyond the period specified in the present law for the program, may not extend eligibility for assistance to an applicant not already covered under one of the programs being merged, and must place the consolidated program under the administration of an agency previously responsible for at least one of the programs included in the consolidation. At the same time, the bill gives the President power to make necessary changes in statutory terms and conditions so that the consolidated programs can function in a manner which will insure that the purposes for which the consolidation was made will be realized. The tremendous proliferation of Federal assistance programs over the years has resulted in a tangled net of programs which now threatens to negate entirely the basic reason for most of the programs: the delivery of services. The overwhelming need today is to improve the delivery systems: to find means of sorting out the overlapping programs and cutting through the array of technical and administrative requirements to insure that the intended services reach the intended recipients effectively and economically. The proposed legislation focuses on this problem. It would provide rapid action to be initiated by the President and full review by the Congress with the right of disapproval by either House within 60 days. We would recommend favorable consideration and enactment of S. 2035. We are advised by the Bureau of the Budget that the presentation of this report is in accord with the program of the President. Sincerely, BOB FINCH, Secretary. Hon. JOHN L. MCCLELLAN, EXECUTIVE OFFICE OF THE PRESIDENT, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: This is in reply to your request for an expression of the views of this Agency concerning S. 2035, 91st Congress, a bill cited: Grant Consolidation Act of 1969. By a Message to the Congress of April 30, 19u9, the President urged the enactment of legislation of this type. This Agency administers only one significant grant-in-aid program-the Federal Disaster Assistance Program. For the reasons stated in the President's message, this Agency recommends the prompt enactment of S. 2035. The Bureau of the Budget has advised that this report is in accord with the program of the President. Sincerely, G. A. LINCOLN Director. DEPARTMENT OF STATE, June 24, 1969. Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: The Secretary of State has asked me to reply to your letter of May 6 concerning S-2035, a bill to amend Title 5, United States Code, to authorize consolidation of Federal assistance programs, and for other purposes. The President has urged Congress to enact a grant consolidation act to improve the administration of grant-in-aid programs. After reviewing the proposed bill, S-2035, the Department has no objection to its enactment. The Bureau of the Budget advises that from the standpoint of the Administration's program there is no objection to the submission of this report and that enactment of the legislation would be in accord with the program of the President. Sincerely yours, WILLIAM B. MACOMBER, Jr. Assistant Secretary for Congressional Relations. OFFICE OF THE SECRETARY OF TRANSPORTATION, Hon. JOHN L. MCCLELLAN, Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: I am replying to your request for the views of this Department on S. 2035, to amend title 5, United States Code, to authorize consolidation of Federal assistance programs, and for other purposes. In his message of April 30, 1969, the President urged the Congress to enact grant consolidation legislation so as "to help make more certain the delivery and more manageable the administration of a growing complex of Federal programs, at a time when the problems they address increasingly cross the old jurisdictional |